Fuel shortage imminent as fuel distributors cease orders in protest

Date:

March 01, Colombo (LNW): The Fuel Distributors’ Association of Sri Lanka has issued a stark warning that the country could face a severe fuel shortage by Monday (03), as members of the association have decided to halt all new fuel orders starting from today (01).

Speaking at a briefing, Kusum Sandanayake, the association’s vice president, explained that the remaining fuel stocks at stations nationwide are based on orders placed by 8.00 a.m. on Friday (28).

With no new orders being placed as of today, he stressed that fuel supplies would rapidly dwindle, leaving stations unable to meet demand by Monday.

Sandanayake further noted that the Fuel Distributors’ Association, which has never previously resorted to strike action, had been forced into this drastic measure due to the Ceylon Petroleum Corporation’s (CEYPETCO) decision to eliminate the 3 per cent commission traditionally given to distributors, replacing it with a new, less favourable formula.

He argued that this change left distributors with no other recourse but to cease their operations.

The CEYPETCO’s decision to scrap the commission and introduce the new pricing structure has been met with strong opposition from fuel distributors, who claim it is a move that undermines their ability to operate sustainably.

Sandanayake placed the blame squarely on the shoulders of the CEYPETCO chairman and managing director, accusing them of making arbitrary and damaging decisions that had disrupted the fuel distribution system.

Following the announcement of the decision to cease fuel orders, panic buying has swept the country, leading to long queues at petrol stations. The Fuel Distributors’ Association is urging the government to intervene and find an urgent resolution to avoid the fuel crisis escalating further.

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